UPDATE 1-UK refinery shuts for strike, fuel prices soar

By Melissa Akin

LONDON, April 21 (Reuters) - A major British refinery cut production on Monday ahead of a worker's strike planned for next weekend, sending fuel price futures soaring and helping drive oil to a new record high above $117 a barrel.

Workers at the 200,000 barrel a day Grangemouth refinery in Scotland, which is integrated with a large petrochemicals plant, have threatened a two-day strike on Sunday over pension cuts.

A shut-down at Grangemouth could also cut flows of North Sea crude into Britain and hit British gas supplies if the Forties pipeline, which feeds the refinery, is forced to close.

Refinery owner Ineos' Communications Manager Richard Longden said the shutdown was starting on the petrochemicals side and moving to the refinery.

"It will take about a week from start to finish," Longden said by telephone.

Ineos said it was shutting a primary distillation unit, which takes in North Sea crude and processes it for further refining into consumer fuels.

Worries about a supply disruption at Grangemouth was one of the factors helping push U.S. oil futures to a new record high of $117.40 a barrel on Monday.

Oil traders said the effects could be felt first on the diesel market.